In Q2 FY27, India-based travel aggregator ixigo reported a consolidated net profit of Rs 63.4 crore, reversing a loss from last year. The turnaround was largely fueled by its partial sale of Freshbus shares and a strong performance in the hotels segment amid growing AI adoption.
- Rs 63.4 crore net profit in Q2 FY27 driven by Freshbus stake sale
- Hotels business revenue grows more than sixfold, with strong AI integration
- Focus on budget and mid-market hotels targeting Tier 2 and Tier 3 cities
What happened
ixigo posted a consolidated net profit of Rs 63.4 crore in Q2 FY27, reversing a loss of Rs 3.5 crore a year prior. This improvement was mainly due to a Rs 40.7 crore gain from reducing its stake in Freshbus, an intercity electric bus operator, from 25.66% to 8.27%. The stake sale was accounted as an exceptional item in ixigo’s financial statements.
While overall revenue rose 13% year-on-year to Rs 321 crore, it fell 10% sequentially compared to the previous quarter. The company also formally separated its hotels business as a distinct operating segment for the first time, reporting strong growth in hotel booking volumes and revenue, supported by its AI-powered hotel partner platform HELLO.
Why it matters
The Freshbus stake dilution marks ixigo’s strategic exit from the capital-intensive daily operations of electric bus services, allowing it to focus on its core technology and distribution strengths. The experience gained during the investment has informed product development for EV operators beyond Freshbus, indicating a broader market opportunity in India's electrified intercity transport sector.
The expansion and formal recognition of the hotels segment underscore ixigo’s ambition to capture a sizable share of India’s growing online hotel booking market, especially in the budget and mid-market categories underserved by existing platforms. With users predominantly from Tier 2 and Tier 3 cities booking combined train, bus, and hotel travel, ixigo is leveraging synergies across its ecosystem to deepen customer engagement and increase monetization.
What to watch next
ixigo’s ability to sustain profitability hinges on scaling its hotels business and successfully integrating AI to enhance customer interactions and operational efficiency. Continued growth in hotel bookings, along with expanding partnerships via HELLO, could drive significant revenue gains in this segment.
Investors and analysts will also watch how ixigo capitalizes on insights from its electric bus experience to develop scalable products for the EV transport market while maintaining focus on its core travel distribution platform amid competitive pressures in India’s online travel aggregator space.